Glad To See Gold And Silver Prices Fall!

How many threads do we really need to have going about what is essentially one subject (expressed or named in many different ways though it may be)?

CCF really does need to have a separate forum for all this huffing, puffing, ranting, raving, philosophizing, insightizing and punditizing...

Yea, I agree.

I think a lot of people complain just to complain. lol

I too have been thinking the same thing, I LOVE seeing silver and gold fall, 1- its been a great trade 2- its been great for adding new items to the collection.

SO I mean come on, this poster had the same thought as I been having.

I get the impression people have a hard time with stuff going down lol

I mean, prices going down, are a part of life. They happen all the time in the markets,,, and there is a ton of money to be made on the way day, as on the way up.

However,circling back to your thread, I mean I think its great, its exciting for collectors such as myself. I can see less enthusiasm for coins I wanted by other collectors which is good for dropping the prices, tho some numismatic stuff is barely budging, other items are dropping, not like a rock but they are moving lower.

Take those 5 oz ATB's, you know I completely forgot about those, just so busy. But I will be collecting those going forward, I like that the proofs got knocked down a bit too, the proof eagles which are my favs.

so yea, I mean lower prices aren't a bad thing, I had mentioned that in my thread many many months ago.

I think I am becoming a stacker just looking for opportunities to buy ASEs at good prices on a fairly regular basis.

Cost of production: Let's go back to South Africa in 1890 when they were sitting on tons of gold stuck to its raw form and no feasible way to get it out. A ton of this stuff would produce no more than an ounce of pure gold. Finally, cyanidation was introduced to the region and their output went from 1 ton of pure gold in 1886 to 14 tons in 1889 and then to nearly 120 tons in 1898.

(This info came from Peter L. Bernstein's "The Power of Gold".)

The time is coming when we will find our modern version of cyanidation that will allow gold to be either stockpiled or flooded onto the public. The bad thing about gold is that it rarely if ever disappears because it is not very useful outside of the artistic realm.

This notion that the Fed is printing a bunch of fiat currency that is worthless and will flood the market is the same tune your father's generation was pitching in the early 80's. I remember it well, and to quote Yogi Berra, "It's deja vu all over again!" Money is printed all the time and old notes are retired all the time. The Fed controls the money supply, and specifically circulation notes and coins (M0), through various techniques and can constrict M0 just as easily as they can expand it. Printed money isn't put into circulation as it's printed. It's put into circulation as it's needed, and pulled out as needed as well.

Also, this notion of production costs assumes high demand. It's like the oil sands in Canada. They can produce oil at a profit when the price per barrel is high, but curtail production when the price drops. If the global demand for gold drops, only the lowest cost producers will produce, thus lowering the average cost of production. Economics 101.

The bubble is bursting on precious metals and I'm ready to finally pick up some deals when silver settles in the $10 to $15 range ($12 perhaps?) and gold finally drops below $1000 ($750 is my guess). Ten years ago gold was around $375 and silver around $6. When you take away all of the irrational hoarding and hedge fund bets, it's hard to imagine gold and silver commanding MORE than double their pre-bubble values. If it's like the 1980's bubble, gold doubled in price ($200 to $400) but silver dropped back to pre-bubble prices ($5). That may be why silver is declining faster than gold right now. But who knows, this could be a dip before a big run up to $2000 gold and $40 silver. PM markets aren't for the faint of heart!

larsdog... um not to differ - but the money being printed is being spent. This is different than your analogy. In the past the money was put into storage and then dispensed as needed - today they are printing it and using it to buy government debt. That model is now being used around the world and has many wondering how sustainable it truly is and what the long term ramifications of it are, since it has never been done before.